Volunteer firefighters called to a property on McLaughlin Road in Gundary on Saturday night found a group of about 150 people had started a large pile burn, were torching cars and doing burnouts.
The call came at 7.40pm from a neighbour who could see a significant dark smoke column coming from nearby, NSW Rural Fire Service Southern Tablelands zone operational officer Lachlan Gilchrist said.
Gundary Rural Fire Brigade was sent to the property as there was no fire permit in the system, he said.
On arrival, people in the group said they hadn't applied for a permit.
The brigade decided there was no risk of the fire spreading and handed the report over to police, Mr Gilchrist said.
Only a week ago, local crews expressed their frustration at being called out to several fires in the Southern Tablelands that could have been avoided if the landholder obtained a permit.
The Southern Tablelands will remain in the statutory bushfire danger period until March 31.
"We have just come through the worst fire season on record in NSW. The season isn't over yet, please continue to support our firefighters by doing the right thing and obtaining a permit," Mr Gilchrist said.
The permit process is free, easy and ensures that fires lit within the bushfire danger period meet the criteria for safe burning, he said.
"It's also important that we know when and where you are burning so we don't have to respond volunteer crews at all hours to a fire that we should have known about."
Substantial fines can apply to anyone found in breach of the NSW Rural Fires Act and its regulations.
Residents can apply for a free permit through their local brigade or the Southern Tablelands zone office (02 6226 3100).